Social Teaching of the Church: A compass for a portfolio aligned with faith
St. John Paul II defined the Social Teaching of the Church as “the careful formulation of the result of attentive reflection on the complex realities of human life in society and in the international context, in the light of faith and the ecclesial tradition. Its main objective is to interpret these realities, examining their conformity or difference with what the Gospel teaches about man and his earthly and transcendent vocation, to guide Christian behavior accordingly”.
Thus, Catholics often face two crucial questions: Can the Church, as an institution, invest its money? Is it morally acceptable for a Catholic to invest in the stock market? The answer is yes, and not only is it morally lawful, but it is often necessary. The Church has the responsibility to manage its temporal goods in the best possible way to continue supporting its pastoral, charitable, and social missions.
Principles of Catholic investing according to the Social Teaching of the Church
Once these questions are answered, the Social Teaching of the Church reminds us that money is not an end in itself, and investments—whether from the Church or individuals—must be ethical investing: not simply profitable but essentially oriented toward promoting the common good.
For this reason, a Catholic investing strategy must exclude companies whose activities go against the Magisterium, such as pornography, abortion, addictions, or labor exploitation. Specifically, the Social Teaching of the Church addresses the economy and finance from a comprehensive perspective, rooted in charity, justice, and truth, and oriented toward full human development and the common good.
It does not provide technical recipes but moral principles and criteria for discernment to guide human action. Economy and morality cannot be separated; their credibility depends on ethics rooted in integral human development.
Ethics, common good, and discernment in faith-based investing
Ethics in the economic and business fields is key. It is not enough to create isolated sectors of socially responsible investing; the entire economy and finance must be infused with ethics, respecting the intrinsic demands of their nature.
We can thus understand that profit—as legitimate and necessary as it is—must serve to humanize the market and society, not be an end in itself.
In short, the Social Teaching of the Church is at the service of humanity, guiding human behavior in all areas, including work and the economy. It becomes a roadmap to morally identify where it is legitimate to invest and where it is not, helping both the Church and Catholic investors to remain integrity and demonstrate that faith and economy can not only coexist but strengthen each other through faith-based investing, ethical investing, and a solid portfolio aligned with Catholic values in investing.
The Social Teaching of the Church makes a clear call for finance and stock market investments to be seen as human activities with a deep moral dimension, supported by professional investing tools and reliable stock screening tools.
